Citigroup May Have Lost $400M On Hedge Fund Trades

A series of trades in one of Citigroup’s units caused a panic in July after its executives discovered that the trades could have cost the bank nearly $400 million, according to a report from The Wall Street Journal. Citing people familiar with the matter, The Wall Street Journal reports that the trades in mostly bonds were made by LNG Capital LLP, a small London hedge fund run by Louis N. Gargour.

Citi clawed back all of the money at risk in 3 months

According to the Journal’s report, Citigroup’s problem was rooted in the its prime-brokerage unit, which handles trades and...